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WSJ: Boy Scouts may file for bankruptcy

The Boy Scouts of America is considering filing for bankruptcy, the Wall Street Journal reported Wednesday.Boy Scouts leadership has hired the law fir...

Posted: Dec 13, 2018 7:39 AM

The Boy Scouts of America is considering filing for bankruptcy, the Wall Street Journal reported Wednesday.

Boy Scouts leadership has hired the law firm Sidley Austin LLP for possible chapter 11 bankruptcy filing assistance, people familiar with the matter told the Wall Street Journal.

According to the newspaper, filing for bankruptcy would halt the many lawsuits the organization faces alleging inappropriate conduct by employees.

In a statement released Wednesday "in anticipation of news reports that will speculate about the BSA's financial position," the Boy Scouts said no immediate decisions are expected.

"We are working with experts to explore all options available to ensure that the local and national programming of the Boy Scout of America continues uninterrupted," Michael Surbaugh, chief scout executive, said in the statement.

"We have an important duty, and an incredible opportunity, to focus as an organization on keeping children safe, supported and protected, and preparing youth for their futures through our nation's foremost program of character development and values-based leadership training."

The statement acknowledged legal costs related to lawsuits against BSA alleging sexual or inappropriate conduct with boys.

"We believe (victims), we believe in fairly compensating them and we have paid for unlimited counseling, by a provider of their choice, regardless of the amount of time that has passed since an instance of abuse," the statement said.

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